401K Benefits to Employers

One of the most popular reasons businesses offer 401(k) plans is to attract and keep top talent at all levels of the organization. Employees enjoy a 401(k) plan since it allows them to set aside money for retirement in a tax-advantaged manner by contributing to an investment fund that is tax-deferred. However, employees aren’t the only ones who benefit from a 401(k) plan; employers can also take a tax deduction for contributions made to their workers’ accounts. Businesses may be eligible for a $500 annual corporate income tax credit during the first three years of having a plan.

Benefits of contributing to a 401(k) include:

Tax Benefits: Tax deductions for employer contributions and IRS tax credits of up to $3,000 over the first three years*. 

Automatic Payroll Deductions: Simple online enrollment and plan participation via automatic payroll deductions. 

High Contribution Limits: $23,000 employee limit and combined employee and employer contributions of $69,000 in 2024, with limit maximum subject to change yearly. 

Flexible Plan Design Options: Eligibility requirements, employer matching/profit sharing, vesting, automatic enrollment, and more. 

Higher Quality and Lower Cost Investment Options: Access to institutional share class funds with lower expense ratios. 


To connect on more details on 401K please visit – Six Reasons the ESI Multiple Employer Plan (MEP) 401K Gives You Peace of Mind – eEmployers Solutions, Inc. (eesipeo.com)

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Still doing your own payroll? Tasks involved with Payroll and Employee Administration are purely transactional events.

Human Resources

At eESI, our business is all about assisting with the management of any organization’s most valuable resource: people.

Employee Benefits

A benefit package can be a major incentive to lure the best new talent to your workforce and keep your current employees happy.

Risk Management

Risk is a basic part of business. As a co-employer we work to eliminate, mitigate or share your associated legal liabilities.

HCM Technology

eESI continuously utilizes the latest in technological advances through online and mobile solutions to make your life easier.

Payroll Admin

Still doing your own payroll? Tasks involved with Payroll and Employee Administration are purely transactional events.

Human Resources

At ESI, our business is all about assisting with the management of any organization’s most valuable resource: people.

Employee Benefits

A benefit package can be a major incentive to lure the best new talent to your workforce and keep your current employees happy.

Risk Management

Risk is a basic part of business. As a co-employer we work to eliminate, mitigate or share your associated legal liabilities.

HCM Technology

ESI continuously utilizes the latest in technological advances through online and mobile solutions to make your life easier.